Rare Earth Elements in China: Crucial Resources that Influence Economic Structures
Running Head: RARE EARTH ELEMENTS IN CHINA
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Rare Earth Elements in China
Michelle Kent University of Houston-Victoria Econ 6367
RARE EARTH ELEMENTS IN CHINA
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Abstract China has an important determinant been at the center of discussion concerning its influence in the global economy. This means that major global economies are up in arms to compete with it for world economic superpower which is currently occupied by the United States of America. It is a common knowledge that the size of the economy relies on the volume of exports and imports of and the corresponding nature of such commodities. Rare minerals are some of the crucial resources that influence the economic structures of different countries and China is not an exceptional. The level of natural resource base is an important determinant of the ability of a given country to realize expansionary growth and infrastructural development. In the international platform, the quota system determines how much export or import a country is entitled to. The main issue in this paper is to find out the impact of the allocated export quota for China on rare Earth metals and the effect this has in the global economic direction (Kogel, 2006). Rare minerals are instrumental in giving a country a bargaining power in the international world market.
RARE EARTH ELEMENTS IN CHINA
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The current social, political and economic realignment taking place in the world is increasing spreading to the different countries in the world. With the campaign against mercantilism trade policy and the advent of free trade by Classical economists, a new world economic order has been on the making. This new concept is termed as globalization (Emsley, 2011). Conventionally, any business transaction is based on mutual gain by the parties concerned and there is always the risk of exploitation if there are no laws to regulate the mode of interaction. It is also an economic reality that each state must be comparatively advantaged in production
1
Rare Earth Elements in China
Michelle Kent University of Houston-Victoria Econ 6367
RARE EARTH ELEMENTS IN CHINA
2
Abstract China has an important determinant been at the center of discussion concerning its influence in the global economy. This means that major global economies are up in arms to compete with it for world economic superpower which is currently occupied by the United States of America. It is a common knowledge that the size of the economy relies on the volume of exports and imports of and the corresponding nature of such commodities. Rare minerals are some of the crucial resources that influence the economic structures of different countries and China is not an exceptional. The level of natural resource base is an important determinant of the ability of a given country to realize expansionary growth and infrastructural development. In the international platform, the quota system determines how much export or import a country is entitled to. The main issue in this paper is to find out the impact of the allocated export quota for China on rare Earth metals and the effect this has in the global economic direction (Kogel, 2006). Rare minerals are instrumental in giving a country a bargaining power in the international world market.
RARE EARTH ELEMENTS IN CHINA
3
The current social, political and economic realignment taking place in the world is increasing spreading to the different countries in the world. With the campaign against mercantilism trade policy and the advent of free trade by Classical economists, a new world economic order has been on the making. This new concept is termed as globalization (Emsley, 2011). Conventionally, any business transaction is based on mutual gain by the parties concerned and there is always the risk of exploitation if there are no laws to regulate the mode of interaction. It is also an economic reality that each state must be comparatively advantaged in production
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